Friday, September 14, 2012

Digital Domain Bankruptcy a Case for Organizing the VFX Industry

You’ve been hearing the rumors for weeks or maybe you
haven’t and were caught completely off-guard like the Alperts family. They sold
everything and moved to Florida with the promise of a dream job at Digital
Domain only to find there was no job. Either way, it’s hard to believe what’s
transpired. Digital Domain Media Group,Incorporated (NYSE: DDMG) has filed Chapter 11 Bankruptcy. Last week the company announced the closing of
its Port St. Lucie, Florida facility. Police were on hand in case there were
any “incidents” with the 300 employees who were given pink slips.

Industry insiders have been saying they knew for some time
that the company had been struggling. There were rumors as far back as six
months ago about company executives rushing to the bank with a 4 million dollar
check from Warner Bros. to cover payroll. Apparently, last week they found
themselves in a similar situation.

What lessons can be learned?

It’s time to pull back the curtain and expose what’s really
going on. Finally, the slick veneer that was Digital Domain has rubbed off. The
truth is; visual effects companies, especially publicly traded corporations like
Digital Domain, are concerned about one thing and one thing only; making money
for their shareholders and owners. They
are not concerned about you as an employee or your family, or artistic
expression, or the environment, or the country for that matter.It’s about profit!

Reread CEO John C. Textor’s resignation letter of September
6th here. After all the self-serving nonsense he admits the decision to
close the Port St. Lucie facility was, “without compassion”. That’s a good way to put it.

The truth is; as unrepresented at-will employees, artists have
no voice in the workplace.The company
sets the conditions for employment. What they say goes and when they say, “go!”
you go.Usually with a cardboard box in
your arms and a few mementos collected over the years if you are lucky. In
Digital Domain’s case, under the watchful eye of police officers there to insure
employees didn’t steal company assets on the way-out.

You’ll find when VFX houses experience financial troubles, artists
get hurt the most. If you are owed wages; you probably won’t see the money
without a huge fight especially if you are working in Canada. In Montreal the
government will cover 3k in lost wages but that is it. In Quebec you're considered
an “unsecured creditor”. That’s legal jargon for “screwed”. Once they go
bankrupt you're last-in-line to get paid. All you can do is hope they don’t go
under. Things aren’t quite that bad here in California, but it’s still no
picnic.

The time has come to ask tough questions. How many more
Digital Domain like companies is it going to take before artists decide
enough-is-enough? Wouldn’t you be better off working under the protection of a
union contract? After all, the CEO and
the boards of directors all have written contracts. Why not you? Wouldn’t it be
nice to have a grievance procedure and to know someone is looking out for your
interests along the way? Don’t rely on a company to look out for your interests.
They don’t care. Remember, they only care about profit. The drama that has
become Digital Domain is the perfect case for finally organizing the VFX
industry.

What about Digital Domain’s competitors?

Well, insiders say Sony is sending HR people to Florida to
see what talent can be found. One result will likely be lower wages for artists
and increased pressure for the bottom line as companies review their own
balance sheets. Perhaps Sony will acquire some of Digital Domain’s projects. Either way it’s a mess.

That’s why Digital Domain is the perfect case
for organizing the VFX industry. Until the industry does; you can expect the
drama to continue. There are plenty more Digital Domains out there; companies treating artists "without compassion". The names
change but the stories remain the same.

1 comment:

The filing of bankruptcy will always depend on what the shareholders agreed upon doing it said by an Arkansas lawyer. I think the decision should always be depends on what majority of the company wants to do that's why I think this is one good example of a unified decision by an organization.

About the Author

Bob Oedy is an International Lead Organizer, author of two books, and founder of VFXSuccess.com.
He is passionate about helping the visual effects industry succeed.
Bob Oedy is a graduate of the National Labor College in Maryland where he earned his Bachelor of Arts Degree in Labor Studies. A Master Electrician, he completed a four-year union apprenticeship program with perfect attendance and achieved the status of journeyman. He holds an Associate in Science Degree in Electronics from Pierce College.
Bob is a proud parent and lives with his fourteen-year-old son in Los Angeles, California. His hobbies are music, public speaking, photography, writing and camping. All opinions expressed are those of the author and not that of any organization